DXC Technology (NYSE:DXC) Shares Gap Up After Earnings Beat

DXC Technology Company. (NYSE:DXC) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $12.94, but opened at $13.94. DXC Technology shares last traded at $14.0420, with a volume of 770,228 shares changing hands.

The company reported $0.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.71 by $0.13. The firm had revenue of $3.16 billion during the quarter, compared to the consensus estimate of $3.17 billion. DXC Technology had a net margin of 2.96% and a return on equity of 18.59%. The company’s revenue was down 2.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.93 EPS. DXC Technology has set its FY 2026 guidance at 2.850-3.35 EPS. Q3 2026 guidance at 0.750-0.85 EPS.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Susquehanna set a $14.00 target price on shares of DXC Technology and gave the stock a “neutral” rating in a research report on Friday. Wall Street Zen downgraded shares of DXC Technology from a “buy” rating to a “hold” rating in a research report on Saturday. Morgan Stanley lowered their price objective on shares of DXC Technology from $16.00 to $15.00 and set an “equal weight” rating for the company in a research report on Friday, August 1st. Weiss Ratings reaffirmed a “sell (d)” rating on shares of DXC Technology in a research report on Wednesday, October 8th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of DXC Technology from $18.00 to $14.00 and set an “underweight” rating for the company in a research report on Wednesday, August 20th. Six research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, DXC Technology currently has a consensus rating of “Reduce” and a consensus target price of $15.00.

Insider Buying and Selling at DXC Technology

In other news, SVP Christopher Anthony Voci sold 2,500 shares of the firm’s stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $14.52, for a total transaction of $36,300.00. Following the completion of the sale, the senior vice president owned 91,105 shares of the company’s stock, valued at approximately $1,322,844.60. This trade represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.61% of the company’s stock.

Institutional Trading of DXC Technology

A number of hedge funds have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its position in shares of DXC Technology by 1.6% during the first quarter. Dimensional Fund Advisors LP now owns 10,599,848 shares of the company’s stock worth $180,725,000 after buying an additional 163,291 shares in the last quarter. American Century Companies Inc. grew its position in shares of DXC Technology by 7.6% during the second quarter. American Century Companies Inc. now owns 6,995,343 shares of the company’s stock worth $106,959,000 after buying an additional 491,668 shares in the last quarter. State Street Corp grew its position in shares of DXC Technology by 2.1% during the second quarter. State Street Corp now owns 6,381,982 shares of the company’s stock worth $97,581,000 after buying an additional 128,916 shares in the last quarter. LSV Asset Management grew its position in shares of DXC Technology by 22.7% during the first quarter. LSV Asset Management now owns 4,151,398 shares of the company’s stock worth $70,781,000 after buying an additional 769,026 shares in the last quarter. Finally, AQR Capital Management LLC grew its position in shares of DXC Technology by 97.0% during the second quarter. AQR Capital Management LLC now owns 3,933,973 shares of the company’s stock worth $60,150,000 after buying an additional 1,936,726 shares in the last quarter. Institutional investors and hedge funds own 96.20% of the company’s stock.

DXC Technology Trading Up 9.9%

The stock has a market cap of $2.55 billion, a price-to-earnings ratio of 6.90 and a beta of 1.12. The business’s fifty day simple moving average is $13.78 and its 200 day simple moving average is $14.52. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.22 and a quick ratio of 1.22.

About DXC Technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS).